The CFTC Takes Action Against Crypto Fraud
The US Commodity Futures Trading Commission (CFTC) is cracking down on crypto fraudsters. A hearing has been scheduled for August 23, 2023, to discuss the CFTC’s motion for a preliminary injunction. In the meantime, the defendants’ assets have been frozen by an ex parte statutory restraining order signed by US District Court Judge Wendy Berger.
Here are the key points from the CFTC’s press release:
- The CFTC is seeking restitution for defrauded investors.
- They also aim to forfeit any ill-gotten profits.
- Civil monetary penalties will be pursued.
- Permanent trading and registration bans may be imposed.
- A permanent injunction against further violations of the Commodity Exchange Act (CEA) will be sought.
Ian McGinley, the CFTC’s director of enforcement, emphasized that the old adage “if something sounds too good to be true, it probably is” still holds true in the cryptocurrency market. He assured that the CFTC will continue to root out bad actors attempting to exploit participants in the crypto and precious metals markets.
Hot Take
The CFTC’s actions demonstrate their commitment to protecting investors and maintaining integrity in the crypto market. With the assets of the defendants frozen and potential penalties on the horizon, this is a strong message to fraudsters that their actions will not go unpunished. Investors should remain cautious and heed the CFTC’s warning to avoid falling victim to scams that promise unrealistic returns.
By
By
By
By
By